Premium Bond Winner ?

YCK

Im new to this forum. Had a quick browse through various comments. Interesting. Me and my wife have max holdings each. Over 5 years we have had a poor return of 2.3% return. This month i got nothing and she got 1 x £100. We purchased the bonds in dribs and drabs. 1k here and 2 there. Im thinking of cashing my lot in then purchasing in 1 block of 30k. Im aware i would lose 1 months chance of winning, but im willing to take the risk. Anyone done anything similar. Advice would be much appreciated.

Jonbvn

YCK wrote: »

Im new to this forum. Had a quick browse through various comments. Interesting. Me and my wife have max holdings each. Over 5 years we have had a poor return of 2.3% return. This month i got nothing and she got 1 x £100. We purchased the bonds in dribs and drabs. 1k here and 2 there. Im thinking of cashing my lot in then purchasing in 1 block of 30k. Im aware i would lose 1 months chance of winning, but im willing to take the risk. Anyone done anything similar. Advice would be much appreciated.

You have exactly the same chance of winning/losing, regardless of whether the PB's are held in large £5k blocks or smaller £1k or £2k chunks. Do not miss out on the chance of winning for a month.

I assume you understand that generally speaking PB's are a poor saving strategy, and on average you will get a much better return from ISA's and other tax-free savings.

YCK

Jonbvn,

Thanks for the reply, yes i understand what you mean. I got caught up in all the hype of PB's at the time and the excitement too!! I think i might just leave them then and consider the other saving options. Roll on April draw!!

Marsh_Samphire

I put £2k into PB October 2007, won 2x £50 in Feb and got another £50 this month.

Tye_Twad

with reference to cashing bonds in for new ones..
does anyone know if you can specify which bonds you want cashing in? for example i have some bonds in blocks of 5k and quite a few in blocks of between £50 & £500, can i keep the 5k blocks and cash in the smaller ones even if they are 5k combined? (if that makes sense to anyone)

also a few people have said that the money decreases in value when kept in p.bonds because of inflation. but surely it decreases in value whether you keep your money in p.bonds,isa's,bank accounts or even stashed under the mattress because of inflation anyway?? bank accounts dont pay interest and then the rate of inflation on top of that do they? unless im missing out on something of coarse
interesting site by the way:T

Flynn_2

trademark wrote: »

is it possible that ernie favours new numbers ...... i dont know ... my mind says no of course not .... but experience says yes

Stands to reason. All those old numbers have probably sunk down to the bottom of the pooter by now and that Ernie bloke who picks them is getting on a bit and probably can't bend down that far.

YCK

Tye Twad

It is possible to cash in which ever bonds you want. Ive had a look at the repayment form, and you have to specify the Bond Numbers - and enclose the certificate. That way you can keep the large 5k blocks and cash the smaller ones in...

freddykrueger

I just found 2 £2 premium bonds that my mum bought under my name in 1969 - contacted NS&I as I had recently opened an account before I found these. They have asked me to send them a letter to merge both accounts and they will send me a statement.

I can but hope

Jonbvn

Tye_Twad wrote: »

also a few people have said that the money decreases in value when kept in p.bonds because of inflation. but surely it decreases in value whether you keep your money in p.bonds,isa's,bank accounts or even stashed under the mattress because of inflation anyway?? bank accounts dont pay interest and then the rate of inflation on top of that do they? unless im missing out on something of coarse
interesting site by the way:T

Generally speaking the return on cash ISA's is well defined and above RPI. At present the return on PB's is below RPI.

Please understand that money just sitting is always losing value due to inflation. If the return (IR) on whatever method you hold your money is less than RPI, then it will decrease in purchasing power.

mayb_2

So this is a better option than your money sitting in a bank account but less of a return on a cash ISA, is what you are saying here Jonbvn. Anything invested in the stock market of course is at risk of losing your stake as well as being below RPI. Of course if you have a big win on the PB or you make a killing on the stock market you can overide all of those arguments.

Some providers are offering at least a return of your money if you invest in their 'stock market' product. This leaves you in exactly the same position as if you had invested in PBs. With PBs you can get your money returned at any time you wish - this is not always possible with other forms of investment.

In the end at the moment money is best invested where the Government is protecting it and you don't pay tax. The choice is, however, yours to make and the risk is yours to take.